Logitech 2012 Annual Report Download - page 197

ADDITIONAL FINANCIAL DISCLOSURES
MARKETING, SALES AND DISTRIBUTION
Principal Markets
Net sales to unaffiliated customers by geographic region were as follows (in thousands):
Year ended March 31,
2012 2011 2010
Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 953,867 $1,032,988 $729,473
EMEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 846,464 872,774 882,635
Asia Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515,872 457,124 354,640
Total net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,316,203 $2,362,886 $1,966,748
Sales are attributed to countries on the basis of the customers’ locations. Revenues from sales to customers
in Switzerland, our home domicile, represented an insignificant portion of our total consolidated net sales in fiscal
years 2012, 2011 and 2010. In fiscal years 2012 and 2011, the United States represented 34% and 36% of our total
consolidated net sales. In fiscal year 2010, the United States represented 32% and Germany represented 11% of our
total consolidated net sales. No other single country represented more than 10% of the Company’s total consolidated
net sales for fiscal years 2012, 2011 and 2010.
In fiscal years 2012, 2011 and 2010, Ingram Micro Inc. and its affiliated entities together accounted for 14%,
12% and 13% of our net sales. No other customer individually accounted for more than 10% of our net sales during
fiscal years 2012, 2011 and 2010. The material terms of our distribution agreements with Ingram Micro and its
affiliated entities are summarized as follows:
• The agreements are non-exclusive in the particular territory and contain no minimum
purchase requirements.
• Each agreement may be terminated for convenience at any time by either party. Most agreements
provide for termination on 30 days’ written notice from either party, with two Ingram Micro agreements
providing for termination on 90 days’ notice.
• We generally offer an allowance for marketing activities equal to a negotiated percentage of sales and
volume rebates related to purchase volumes or sales of specific products to specified retailers. These
terms vary by agreement.
• Most agreements allow price protection credits to be issued for on-hand or in transit new inventory if we,
in our sole discretion, lower the price of the product.
• We grant limited rights to return product, which vary by distributor. Under most of the Ingram Micro
agreements, the Ingram Micro entities may return defective products and may return up to 10% of the
previous quarter’s purchases, if they place an offsetting order for the amount they returned. Under one
agreement, the Ingram Micro entity may return aged products or take a nominal credit for inventory held
over 60 days.
Marketing
Logitech builds awareness of our products and recognition of the Logitech brand through targeted
advertising, public relations efforts, social media, distinct packaging of our retail products, in-store promotions and
merchandising, a Worldwide Web site and other efforts. We also acquire knowledge of our users through customer
feedback and market research, including focus groups, product registrations, user questionnaires, primary and
multi-client surveys and other techniques. In addition, manufacturers of PCs and other products also receive
customer feedback and perform user market research, which sometimes results in requests to Logitech for specific
products, features or enhancements.
ANNUAL REPORT
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